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Former city man pleads not guilty to stealing more than $900G

By Lisa Redmond, lredmond@lowellsun.com

Updated:
07/16/2013 10:05:46 PM EDT

SALEM -- A disbarred Lawrence attorney was arraigned in Essex Superior Court Tuesday as part of a statewide indictment in connection with stealing more than $900,000 from multiple clients, one of them elderly, according to Attorney General Martha Coakley's Office.

Phillip Thompson, 35, formerly of Lowell, pleaded not guilty to charges of larceny over $250 from a person over 60, larceny over $250 (seven counts), and unauthorized practice of law.

Thompson was released on personal recognizance with conditions set in a related case pending in Middlesex Superior Court.

In that case, Middlesex Superior Court Judge Kathe Tuttman released him on $10,000 cash bail and ordered him to remain on house arrest wearing a GPS device. He is permitted to leave for employment Monday through Friday and for Sunday religious services. Judge Tuttman also ordered that he surrender his passport and he is prohibited from practicing law.

The case in Essex Superior Court is related to the case in Middlesex Court as part of an alleged continuing scheme by Thompson, while an attorney, to defraud clients, prosecutors allege.

Essex Superior Court Judge Timothy Feeley allowed a motion by prosecutors with the AG's office to combine the Essex and Middlesex charges, transferring the entire case to Middlesex Superior Court. The next date at the Middlesex court is July 30 for a status hearing.

The AG's Office began an investigation in 2011 after the matter was referred by the Essex County District Attorney's Office.

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Thompson worked as an attorney out of his Lawrence law office, primarily specializing in real estate, and also ran a debt-collection agency out of his office.

Authorities allege that between July 2007 and June 2011, Thompson stole more than $900,000 from at least seven clients.

The investigation revealed that Thompson represented clients in several real estate transactions, allegedly failing to pay off loans and failing to give funds to clients who were owed money.

In one case, Thompson allegedly represented an elderly man and his wife who were seeking to obtain a settlement from their insurance company after their home burned down.

When the insurance company issued more than $416,000 in checks jointly to the clients and Thompson, Thompson allegedly converted the funds for his own use and the clients never received any of the money.

In another instance, a reverend gave Thompson $60,000 to hold in escrow pending a closing on land that his church intended to purchase. When the closing fell through, Thompson allegedly never returned the money and kept it for personal use.

According to investigators, Thompson continued to solicit legal business and represent himself as an attorney after he was suspended from practice in June 2010. Thompson was later disbarred in July 2012.

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